The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1887-12-29
Western Farm Mortgages.

PRICES WnIcH huNe poNoTHeu III iuIih
products Of late years western farmers
are head over ears in debt and western
farms MS u rule, are mortgaged beyond
hope of redemption. Mr.. Edward At
kinson, the statistcan and political
economist, has been investigating this
subject for some time past, and gives
the results Of such Investigation In
"Bradstreets,' which shows the condi-
tons among the farming class in the
west are by no means SO bad ms have
been represented or feared. He says:
"There has been nquestionably
many persons in this country who
have had their doubts in regard to the
condition of western ayr culture dur
ing the recent period of heavy decline
in prices. | therefore beg to submit
certain facts, subject to addition here
after, as further information may be
obtaincd And ! beg any reader of
This communication who may bc able
10 give me additional statistics to do so.
The questions put by me TO the
mortgage security companies were as
follows:
a. For what number of years have
you lent money on western farmsv
"2 What sum in all?
20 On how many mortgages?
81 How many have been paidp
- What sum is now out8tandingp
&c. On how many mortgages?
~ What number of foreclosures
have you made?
g What losses haze YOU metz
-. What number of foreclosures
have you pending ut this. date9
40. What reduction has occurred
IN the average rate of interest charged?
III. Are there any signs of disas-
ter. bankruptcy or loss disclosed by the
recent conditions?
"l2 What comments have you to
make?
in reply TO these quest ons | have
received ten communications covering
n term Of years ranging from four TO
thiriy-eight. A summary of the replies,
disregarding fractions is as follows:
Number of mortgages, 100000.
Total amount loaned, $3.50, 600, 900
average per mortgage 5000.
Already paid $4,000 mortgages.
amount outstanding, S1J. 900, 600
Number OF mortgages outstanding,
81, 900
"The total number of foreclosures is
not given in all cases; in some the
amount is gwen. in others the number.
BY computation on the average, the
total number cannot exceed 1000. In
one or two cases there has been slight
loss, but the summary of all the esti-
mates of foreclosure gives n profit on
the foreclosure account
"The reduction in the rate of interest
has been from 10 per cent annual in
tcrest and 10 per cent commission on
five years mortgage 10 an average of
81 to q per cent, at the present time,
without commission.
Zone of my correspondents states
that the business in which his company
is engaged has, 10 n great extent,
ceased in Ohio, Indiana and Illinois,
and we might also include Iowa; but
it is still conducted farther west in
Kansas, Nebraska and Dakota. etc.
Many of those TO whom loans were
first made are now lenders through the
same corporation.
an reply TO the eleventh question as
to loss. disaster, or bankruptcy, the
answer is that on the contrary the
present conditions Indicate wide spread
and almost universal prosperity.
"As n specimen OF the answers TO the
ninth question. What number of fore
closures have you pending at this dateP !
| will give but one. This reply comes
from II corporation which has loaned |
$50, 600. 900; We have two foreclo-
sures pending ut this time, one ut the |
of the heirs of the borrower
for the purpose Of perfecting the title;
the other will be pad off before de-
cree is reached. 1t was commenced |
because Of the rcgl gence of the bor-
rover IN tie matter of his payments.
Il have attempted to see if there
was any difference in the conditions of |
The wheat growing sections, but | have
found none. ] send this communica-
| on TO you mt this time because | have |
not all the addresses of the various cor
poralions or persons who are engaged
IN this bus ness. and shall be very |
glad 10 receive further communication |
in order that the final computat ons !
may cover the whole case.
While great fortunes acquired by
farming may be scarce il is certain no
business calling can show so few bus
mess failures in proportion to the num-
Der of persons engaged in il. Farm
,r's ReUiew.